Pound Lower Despite Brexit Hopes

The Pound Sterling lost momentum on Monday despite word that the British government is close to having a deal in place by next month. Wary FX traders are still assessing all possible outcomes of the Brexit negotiations and decided to book profits which pushed the Pound lower. At the same time, the greenback remains in positive territory after the weekend's news that President Trump's Supreme Court appointee was finally confirmed despite heated protests.

As reported at 11:22 am (BST) in London, the GBP/USD was trading lower at $1.31, down 0.05%; the pair has ranged from a trough of $1.3048 to a peak of $1.3134. The EUR/GBP is trading at 0.8787 Pence, a gain of 0.04% and off the session peak of 0.88014 Pence while the low is nearer at 0.87750 Pence.

Prime Minister Looking for Support

Analysts say that the sticking point of the Brexit negotiations remains the inability to draft acceptable terms for the Irish border customs arrangements. Insiders have said that Theresa May is working feverishly to gain support from policymakers within the Labour Party in order to get the deal through the Parliament. There is more optimism that the Prime Minister is making progress, and that the risks for a hard Brexit seem to now be fading.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.